# Calculate Future/present values and “original principal amount” and “value of an annuity ” and rates of interests (FINANCE HOMEWORK)

Calculate Future/present values and “original principal amount” and “value of an annuity ” and rates of interests (FINANCE HOMEWORK)

1.         Calculate future value of \$5,600 received today and deposited at 9 percent for three years.

2.         Calculate the present value of \$90,000 to be received in 15 years, assuming an opportunity cost of 14%.

3.             Calculate the present value of a \$10,000 perpetuity at a 8% discount rate.

4.         You have obtained a seven year, 8 percent loan with a bank requiring annual end of year payments of \$960.43.  Calculate the original principal amount.

5.        Calculate the future value of an annuity of \$5,000 each year for eight years, deposited at 6 percent.

6.         Calculate the future value of an annuity of \$5,000 each year for eight years, deposited at 6%.

7.         A deep discount bond can be purchased for \$312 and in 20 years it will be worth \$1,000.  What is the rate of interest on the bond?

8.         You have borrowed \$25,000 from the bank at 15 percent to be repaid in 10 equal annual installments.  Calculate the end of year payment.